Rogers Communications Q3 2025 Earnings Call Transcript

Rogers Communications Inc. Reports Strong Q3 2025 Earnings

Rogers Communications Inc. (NYSE: RCI) delivered another strong quarter in the third quarter of 2025, surpassing earnings expectations with a reported EPS of $0.984 compared to the expected $0.92. The results reflect continued growth across all three of the company's core businesses—Wireless, Cable, and Media.

Wireless Performance

In the highly competitive wireless market, Rogers maintained its industry-leading position. The company added 111,000 total mobile phone net additions in Q3, with the majority of these coming from the Rogers postpaid brand. This performance was driven by innovative add-a-line plans that offer customers value while supporting strategic network investments.

Rogers also introduced satellite-to-mobile technology, which provides 3x more coverage than any other carrier in Canada, particularly benefiting those in remote areas. The beta trial launched in July received positive feedback, and the company has extended the trial with additional capabilities planned for the coming months.

The postpaid churn rate for the quarter was 0.99%, a decrease of 13 basis points year-over-year, marking the lowest churn in over two years. Wireless margins remained strong at 67%, reflecting the company’s focus on efficiency and customer satisfaction.

Cable Growth

Cable operations showed continued positive growth, reversing previous negative trends. Retail Internet additions reached 29,000 in the quarter, with approximately 80,000 new subscribers added year-to-date. Rogers’ 5G Home Internet technology played a key role in this growth.

The company also launched Rogers Xfinity StreamSaver, combining popular streaming services at an attractive price point. Additionally, Rogers became the first Canadian provider to introduce WiFi 7, the latest generation of WiFi technology. These innovations, along with smart home devices and self-protection features, contributed to industry-leading Cable margins of 58%.

Media Revenue Growth

Media revenue grew by 26% in Q3, driven by the strong performance of the Toronto Blue Jays during the regular season and the consolidation of MLSE results. The acquisition of an additional stake in MLSE added both revenue and profitability to the business.

The company expects Media revenue and adjusted EBITDA for the full year 2025 to reach $4 billion and $250 million, respectively. With Sports and Media assets valued at over $15 billion, Rogers is focused on unlocking this value for shareholders. The company plans to acquire the remaining 25% minority interest in MLSE in 2026, further enhancing its sports and entertainment portfolio.

Financial Highlights

Rogers maintained a strong balance sheet, with a debt leverage ratio of 3.9x after completing the MLSE acquisition. Capital expenditures for the year are now expected to be $3.7 billion, slightly below the previous target of $3.8 billion. Free cash flow is projected to range between $3.2 billion and $3.3 billion, higher than earlier estimates.

The company emphasized its commitment to maintaining a strong, investment-grade balance sheet while pursuing growth opportunities. Continued focus on cost efficiency, capital allocation, and free cash flow growth will support long-term financial stability.

Outlook for 2026

Looking ahead, Rogers remains confident in its ability to drive growth across all segments. The company anticipates further improvements in capital efficiency and free cash flow, alongside continued efforts to reduce leverage. The transformation of the Sports & Entertainment business into a global leader is a key priority, with potential transactions to unlock additional value from its sports assets.

As the fourth quarter approaches, Rogers will maintain its focus on execution discipline, revenue growth, and subscriber expansion. The company is well-positioned to capitalize on the momentum built over the past four years and continue delivering strong performance in the quarters and years ahead.